Airbus will present and pitch its narrow-body A220 aircraft to Croatia Airlines in Zagreb on Tuesday next week. It comes as the carrier’s new post-Covid strategy, which is awaiting approval from the government, outlines plans for the renewal of the airline’s fleet. The A220 is being seen as a potential replacement for the carrier’s ageing Airbus aircraft. Next week’s presentation will include a short demonstration flight around the Croatian capital. The A220 comes in two variants, with the A220-100 having the ability to seat between 100 and 135 passengers, while the A220-300 can carry between 120 and 160 travellers, depending on the cabin layout.
Croatia Airlines is in the process of negotiating the cancelation of its order for four A320neo aircraft with the European plane manufacturer. The first two jets were initially to arrive in Zagreb next year, and the remaining two in 2023. Talks with Airbus regarding their cancellation were put on hold last year due to the coronavirus pandemic. However, at the time, Croatia Airlines said, “Negotiations concerning the Termination Agreement, which will result in the cancellation of the A320neo order and the use of the deposit for other Airbus services are currently on hold due to Covid-19 and will resume as soon as possible”. The carrier is believed to have deposited over eight million euros for the aircraft, which it now aims to use on other Airbus products.
The current average age of Croatia Airlines’ fleet amounts to sixteen and a half years. The A320s are currently the oldest, averaging 21.7 years, followed by the A319s at 19.8 years and the Dash 8s at 12.1 years. Out of 258 carriers operating the A320 aircraft, Croatia Airlines ranks 229th in terms of the age of the jets, while out of the 122 A319 operators, the Croatian carrier ranks 111th in the world. Among airlines utilising the Dash 8s, Croatia Airlines has one of the younger fleets of this type in the world, ranking 30th globally. Prior to Covid-19, Croatia Airlines adopted a five-year business development plan (2020 - 2025), which foresaw the renewal of its fleet with mid-age A319 and A320 aircraft, as well as replacements of its wet-leases with long-term dry-leases. However, this strategy is no longer valid.
With what money? Salaries are already delayed and FR will only put more pressure on them. If they get any money from the government it will be to just making to the next season.
ReplyDeleteCorrect
DeleteSalaries are delayed? If that`s true, they`re nearing the end.
DeleteWhere did you get info that salaries are delayed?
DeleteA close friend of mine works for them and it's been like that for a while. Few days, nothing too bad but still.
DeleteNever a good sign.
DeleteDa, isto kao dobar prijatelj iz farmaceutske industrije mi je rekao da se ne cijepim:)) glupost po običaju..
DeleteRegarding what money, they have 6 Airbus planes they own that they can sell.
DeleteI adore professional source of information like you are....I work in CTN and there was no delays in salaries not even during lockdown... If your "friend" is the source of information, then he is one of those who shall say any BS just to get attention....Things were never perfect in this company, and hardly will ever be, but a lots of informations spread in this forum are far ,far away from the truth. But, haters will always hate.....
DeleteI also work for CTN and there were no delays in salaries. False info 100%.
DeleteSounds like adria and sukhoi
ReplyDeleteIndeed and once OU announces a major expansion the end will be near.
DeleteThe perfect aircraft for OU in my opinion.
ReplyDelete+1
DeleteBut can they afford it?
ReplyDeleteWell they have those 8+ million tied up with Airbus. I'm not saying they can afford the A220 but they will probably use that money for something with Airbus.
DeleteThey can take out a loan.
DeleteYes but monthly leases on new aircraft are not cheap. Also the only way they can get a loan is in the government sponsors them for it.
DeleteI remember OU said in 2019 (before corona) that they can't afford new aircraft and that a strategic partner would be used to get new aircraft for them. So I doubt anything has changed. Things could only have gotten worse with Covid.
DeleteThey could do a sale and leaseback.
DeletePurger will arrange finance for lease.
DeleteYou still need cash to do sale and leaseback.
Deleteanon@9.09 - wishful thinking is unfortunately never enough to make things happen. On what basis can they take out a loan ? Loss making companies (with no immediate end in sight) cannot secure credit against future profits or even positive revenue/cash flows and they own no assets of any significant value, that would cover the cost of such aircraft. They are probably in the vicinity of EUR70-80m each excl engines, BFE and other add ons, so where on God's earth are they going to get money to finance such a deal ?
DeleteThe Govt I hear you say ? They have already been given state aid to cover their operational expenses, so they have done their dash with that. The only means left is Govt guarantees and that constitutes state aid as well. So they are well and truly fxxxxd.
Fleet renewal is most likely to be had with the leasing of mid-age aircraft. No issues with that if they move fast and secure good lease rates with PBH deals built in.
There should be one national-regional airline for the BCSM countries with a name that has nothing to do with any of the counties specifically. This would be the only way a healthy airline would survive here otherwise they will all be fated to financial struggle.
DeleteNo thank you. We have gotten ourselves out of that mud only to sink back right into it again? The Govt has many an option to use on ou but for the OU but the are indecisive and are choosing to let the inapt minister handle it. His aporoach is state budget subsidies, which is wrong. OU can sell the A319 and A320, combine the money with the drposit with Airbus, and opt for a long term lian to get them more efficient aircraft. OU needs to let go 30: of their work force and appoint good management. Or dimply let Trade Air management run OU.
DeleteEverly brothers - "All I have to do is dream"
ReplyDeleteApparently BCG proposed for the A319s and A320s be replaced with A220s.
ReplyDeleteGood luck with that.
DeleteAt some point you would hope they would get planes to expand their fleet and open new markets and not just to replace older aircraft.
DeleteThey need more 100 seater jets.
DeleteThey need a viable network plan and then they can decide on what capacity aircraft will meet their needs
DeleteBCG works for Airbus not for OU.
DeleteStill they get paid for by the people of Croatia.
Its just a scam.
This would be a good move by CTN. They actually need a plane between the Dash and A320.
ReplyDeleteIf only they'd know what to do with it.
DeleteWouldn't it just be cheaper to lease CRJ1000s then?
DeleteWhat other "Airbus services" could they get with 8.5 million?
ReplyDeleteThe current A319/A320s are getting quite old
ReplyDeleteI'm interested to see how their fleet will develop in the next few years. Eventually they will have to repalce these.
Delete"Out of 258 carriers operating the A320 aircraft, Croatia Airlines ranks 229th in terms of the age of the jets, while out of the 122 A319 operators, the Croatian carrier ranks 111th in the world. "
DeleteNot nice.
"I'm interested to see how their fleet will develop in the next few years."
DeleteGet yourself a ticket to a museum of aviation and you will see how the fleet will develop and what purposes will serve for.
You have to be crazy to buy new aircraft knowing the financial status of the company. Better to lease out older planes.
ReplyDeleteExactly. New aircraft are the least necessary thing that OU needs at the moment. These planes are too expensive.
DeleteBCG proposes that deal to OU because they will then get a fat provision from Airbus.
DeleteThat provision will of course be included in the overall bill.
Thats how business functions nowadays.
How many planes does Croatia Airlines own?
ReplyDelete6 airbuses I believe. 4 A319s and 1 A320.
DeleteAlso I think the Q400s are on financial lease. So when they pay it off they should become OU property.
DeleteThat's very good. Thanks.
DeleteIf Croatia Airlines already fully owns any Airbus planes, then why get rid of them? That is exactly what they need, reliable and fully depreciated airplanes they can operate during the summer and park during the winter.
DeleteNew and more efficient planes can't be treated this way because they are too expensive to have sitting around idle for part of the year.
They have two A320s
Delete^ Sorry, that's what I meant. 6 planes - 4 A319s and 2 A320s.
Delete5 A319- CTG, CTH, CTI, CTL, CTN
Delete2 A320- CTJ, CTK
6 Q400- CQA, CQB, CQC, CQD, CQE, CQF
Anonymous10:03
Delete5 A319
They don't own CTN.
DeleteThe question was how many aircraft they own, not how many aircraft they have in their fleet.
DeleteTo put 320 into acmi is not big deal, but it is for a319 and 220 😂
DeleteWhen does the financial lease for the Dash 8s end?
DeleteDo they even own the engines on the few a319/320 they own? Back in 2015 and 2016, they've sold and leased back at least 3 engines, I did not follow if theyve done same with other engines...
DeleteThose planes are too expensive.
ReplyDeleteBest of luck OU
ReplyDeleteI think they need to invest in more Q400s. Routes that can sustain A319 can just get extra frequencies.
ReplyDeleteAnd how would you operate Zagreb-Dublin with the q400. Or Zagreb-London. How long would it take? Ryanair would eat them alive.
DeleteA220-100 is what OU needs.
ReplyDeleteI agree completely. JU also
DeleteSeems to me a good choice for OU. Regarding the A320NEO, I wouldnt cancel them as in my eyes at least two of them are needed for Coast flights in Summer to compete with all the LCC and legacy carriers operating with A320 or even A321 size aircraft.
ReplyDeleteRegarding funds, the HR government has to be creative or go on resistance against EU as I dont see a reason why we should leave air traffic to HR to external airline companies, which same time benefit elsewhere from tax gifts or let staff fly for peanuts. Same time OU needs to make sure to have a good cost control, with limited but fair salaries, limited especially also for the top management and that the quality is in line with the competition. Especially in Business class, there should be a good product available with tasty food, HR wine, no plastic and a menu and wine card which looks professional and inviting. (Level of LX)
Agree. Unfortunately business class meal offering has been replaced with economy class food box. And it's now longer covid related. It's a permanent downgrade.
DeleteThe A220 is a really good option and I am sure Croatians would be able to get a decent deal.
ReplyDeleteMy suggestion for OU fleet:
ReplyDelete10 Q400
6 A220-100
2 A220-300
I think ATR is a better choice.
DeleteWhy would an airline with 6 Q400s already which it will eventually become an owner of switch to ATR?
Deletethe ATR is much more economical than the q400, especially over very short distances. but of course also slower. the q400 is also no longer produced
DeleteQ400 has 1000km greater range and is 160km/h faster.
DeletePretty much over the next 5 years we will probably see a complete change in the fleet.
ReplyDeleteNo matter what people say I'm glad OU is finally waking up and things are moving in the right direction :)
ReplyDeleteWhat direction are you talking about ?
DeleteYea... right...
DeleteWould be cool if they could work out a deal with Airbus for these planes.
ReplyDeleteHope something will happen
ReplyDeleteGood plane, good economics and passenger friendly.
ReplyDeleteIt is also expensive.
DeleteThey should just get the Sukhoi Superjet :D
ReplyDeleteNever going to happen.
Delete^ Same as the A220...
DeleteNot gonna happend. They don’t have the money + they can’t compete with Ryanair even with new A220s
ReplyDeleteI don't think they can compete with Ryanair with any aircraft type.
DeleteSeems like using the A220 will only give more opportunity to Ryan Air and Wizz. How do you compete with a smaller airplane and higher costs than what they are using? Ryan Air and Wizz will just follow Croatia around with lower fares, more seats, and quickly run the airline out of whatever money is left.
DeleteNow we are all talking about replacement for A319/A320 planes. A few years ago we were talking about this plane being an addition to the A319/A320 :(
ReplyDeleteThe times have changed. They need to have a regional hopper to be able to connect Zagreb with most important destinations at reasonable cost. Q400 s can be the answer. Or ATR72-600s.
ReplyDeleteGetting anything larger and more expensive a gamble having in mind Ryanair's ability to just overfloods market with cheap seats, on practially any route.
Additionaly, Mothership Lufthansa has more than enough on its plate to worry about the minuscule feeder airlines.
Turboprops are not very popular with passengers and how will you compete against Ryanair on routes to Brussels, London and Dublin with a Q400.
DeleteI will not compete. They might, or might not.
DeleteDecent regional fleet could provide them with sufficient feed to send larger planes to the west. Also it would enable them to connect destinations like Tirana to Prague, or Bucharest to Zurich at reasonable cost.
Besides, they would need to rethink the western destinations as well, to avoid FR, yet maintain connectivity.
It will be great to see this bird in ZAG next week :)
ReplyDeleteCan somebody please explain to me what is happening here. One minute I am reading that OU is loosing money and needs aid to inject cash flow the next minute I am reading that they are considering renewing their fleet.
ReplyDeleteCalm before the storm.
Deleteyep, exactly Anonymous 12:05 .... people just high on jet fuel will write and wish for anything ....
DeleteOU management doesn't need consulting to tell them A220 is better than A319. They need help to show them how to legally pay for it and there is no consultancy on this planet that can do it.
DeleteShould not surprise if government attempts to devise some convoluted scheme where government indirectly pays Airbus for A220 in some way instead of OU paying for it. For example, Tito paid for JAT DC-10s using some barter deals.
Stop with BS about Tito paying for JAT DC-10 with whatever. It is the same BS as that we had only one type of yoghurt in Yugoslavia. Yugoslavia had MARKET ECONOMY where every single subject was doing business on its own, not centralised and planned economy of the Eastern Block. JAT paid for DC-10, and later for 737-300 every single cent and dime. And Tito as one of the World leaders had much more important things to do than buying things for companies.
DeleteNije Tito poanta već gdje pronaći eure za nove avione?
DeleteA220 is way to small for charter operations as it's also much smaller than a320 so I do not see logic here, it is very nice, modern, fuel efficient aircraft but can't commpare to a320 with seating cappacity.
ReplyDeleteThere's more money to be made with scheduled flying rather than charters. You don't see IAG, LH or Ryanair doing a lot of charter flying.
DeleteConsultants need to say something to justify their consultancy fees, they never say money back guarantee if their advise is incorrect
ReplyDeleteClients rarely ever fully implement everything that consultants leave in their final reports ... or if they do, they never do it in a timely manner either.
DeleteHowever, I agree that even when a client does everything to the letter of what they have advised, if things don't improve or if they go worse, these CONsultants are never to be found offering a refund ...
In the end, these guys are no better than Siegfried and Roy with their magic act in Vegas
AirBaltic is a clever example of how to work. If necessary, they could buy several larger aircraft. They don't need to invent anything new, just follow good examples.
ReplyDeleteI do agree. The cheapest way is to have all planes same type because maitanance and training is much more cost efficient. And also croatia is enough big as well as have enough turists to have all a220 fleet, for example slovenia need one smaller aircraft as not many routes are so popular as on croatia flights.
DeleteBravo Hrvatska!
ReplyDeleteMy suggestion without considering crew training costs :
ReplyDeleteAtr 72
Airbus A220 (100-300)
Atr 72 for domestic flights and international flights to Frankfurt, Zurich or Bucharest
DeleteA220-100 and A220-300 for domestic and international flights
Buying or leasing only A220 would be" presipanje iz supljeg u prazno". OU needs to GROW DRAMATICALLY if it wants to survive. Existing 320 neo order should be converted to 321 XLR, and A220, bought or leased, should be the type which will come in place of 319/320, in double numbers. Q400 fleet should also be enlarged. Regional network doubled. North America and India introduced. The only way to survive.
ReplyDeleteUsually, there are two airlines and or air companies, the private and the government ones. Somebody should take care of the money, otherwise it's go to the drainage. See what is happening with Alitalia.
ReplyDeleteThe best airplane is the one who give better ratio in cost effective. Every body can give his personal opinion for this kind of airplane or that is better, but they should know at least, a little about airline business, not only see YouTube or playing as pilot... in a computer games.
If, in the future, there will be used A220s available to lease, what Airbus services could be paid for with €8m? Crew training surely won't cost that much and buying new aircraft directly from Airbus is obviously out of the question. Does Airbus have any subsidiary in Europe providing heavy maintenance for A220?
ReplyDeleteHow will the A220 compete with Wizz and Ryan Air who are operating bigger airplanes and have lower costs? Seems like this move will automatically give wizz and Ryan Air greater market share.
ReplyDelete